MORGAN STANLEY (1MS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MS - US6174464486 - Common Stock
152.74 EUR
-9.12 (-5.63%)
We assign a fundamental rating of 3 out of 10 to 1MS. 1MS was compared to 118 industry peers in the Capital Markets industry. Both the profitability and financial health of 1MS have multiple concerns. 1MS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 1MS was profitable.
- In the past year 1MS has reported a negative cash flow from operations.
- 1MS had positive earnings in each of the past 5 years.
- The reported operating cash flow has been mixed in the past 5 years: 1MS reported negative operating cash flow in multiple years.
1.2 Ratios
- 1MS's Return On Assets of 1.14% is in line compared to the rest of the industry. 1MS outperforms 51.69% of its industry peers.
- The Return On Equity of 1MS (14.15%) is better than 72.88% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 1.46%, 1MS is in line with its industry, outperforming 51.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.14% | ||
| ROE | 14.15% | ||
| ROIC | 1.46% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of 1MS (13.32%) is comparable to the rest of the industry.
- 1MS's Profit Margin has declined in the last couple of years.
- The Operating Margin of 1MS (18.06%) is comparable to the rest of the industry.
- 1MS's Operating Margin has declined in the last couple of years.
- 1MS has a better Gross Margin (54.99%) than 66.10% of its industry peers.
- 1MS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.06% | ||
| PM (TTM) | 13.32% | ||
| GM | 54.99% |
OM growth 3Y-4.95%
OM growth 5Y-7.71%
PM growth 3Y-5.29%
PM growth 5Y-7.41%
GM growth 3Y-10.21%
GM growth 5Y-8.75%
2. Health
2.1 Basic Checks
- There is no outstanding debt for 1MS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- Based on the Altman-Z score of -0.06, we must say that 1MS is in the distress zone and has some risk of bankruptcy.
- 1MS's Altman-Z score of -0.06 is in line compared to the rest of the industry. 1MS outperforms 48.31% of its industry peers.
- 1MS has a Debt/Equity ratio of 7.41. This is a high value indicating a heavy dependency on external financing.
- 1MS has a Debt to Equity ratio of 7.41. This is in the lower half of the industry: 1MS underperforms 66.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.06 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 0.30 indicates that 1MS may have some problems paying its short term obligations.
- The Current ratio of 1MS (0.30) is comparable to the rest of the industry.
- A Quick Ratio of 0.30 indicates that 1MS may have some problems paying its short term obligations.
- 1MS has a Quick ratio (0.30) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 28.59% over the past year.
- 1MS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.28% yearly.
- 1MS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.54%.
- Measured over the past years, 1MS shows a quite strong growth in Revenue. The Revenue has been growing by 17.86% on average per year.
EPS 1Y (TTM)28.59%
EPS 3Y18.47%
EPS 5Y9.28%
EPS Q2Q%20.72%
Revenue 1Y (TTM)11.54%
Revenue growth 3Y21.98%
Revenue growth 5Y17.86%
Sales Q2Q%10.28%
3.2 Future
- Based on estimates for the next years, 1MS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.05% on average per year.
- 1MS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.14% yearly.
EPS Next Y11.93%
EPS Next 2Y10.69%
EPS Next 3Y9.25%
EPS Next 5Y9.05%
Revenue Next Year8.65%
Revenue Next 2Y7.01%
Revenue Next 3Y6.07%
Revenue Next 5Y5.14%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 17.70 indicates a rather expensive valuation of 1MS.
- Compared to the rest of the industry, the Price/Earnings ratio of 1MS indicates a somewhat cheap valuation: 1MS is cheaper than 66.95% of the companies listed in the same industry.
- 1MS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 15.82, the valuation of 1MS can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MS indicates a somewhat cheap valuation: 1MS is cheaper than 71.19% of the companies listed in the same industry.
- 1MS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.7 | ||
| Fwd PE | 15.82 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1MS indicates a somewhat cheap valuation: 1MS is cheaper than 70.34% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.45 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.48
PEG (5Y)1.91
EPS Next 2Y10.69%
EPS Next 3Y9.25%
5. Dividend
5.1 Amount
- 1MS has a Yearly Dividend Yield of 2.19%.
- Compared to an average industry Dividend Yield of 3.08, 1MS pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, 1MS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
5.2 History
- On average, the dividend of 1MS grows each year by 18.94%, which is quite nice.
Dividend Growth(5Y)18.94%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1MS pays out 41.70% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of 1MS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.7%
EPS Next 2Y10.69%
EPS Next 3Y9.25%
MORGAN STANLEY / 1MS.MI FAQ
What is the ChartMill fundamental rating of MORGAN STANLEY (1MS.MI) stock?
ChartMill assigns a fundamental rating of 3 / 10 to 1MS.MI.
What is the valuation status for 1MS stock?
ChartMill assigns a valuation rating of 3 / 10 to MORGAN STANLEY (1MS.MI). This can be considered as Overvalued.
What is the profitability of 1MS stock?
MORGAN STANLEY (1MS.MI) has a profitability rating of 3 / 10.
Can you provide the financial health for 1MS stock?
The financial health rating of MORGAN STANLEY (1MS.MI) is 1 / 10.
What is the earnings growth outlook for MORGAN STANLEY?
The Earnings per Share (EPS) of MORGAN STANLEY (1MS.MI) is expected to grow by 11.93% in the next year.